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What has changed in the travel rules?
What has changed in the travel rules?
The rules of business trips of employees are regulated by the decision of the Ministry of Finance of the Republic of Azerbaijan No. Q-01 dated 18.01.2012. Tax experts comment on recent changes to that decision.
A business trip is considered to be a business trip when an employee goes to another place for a specified period of time by the order (command) of the head of the state body, enterprise, department and organization (hereinafter - the organization). The duration of the employee's secondment is determined by the head of the organization, but this period cannot exceed 40 days, excluding the time spent on the road.
In the territory of the Republic of Azerbaijan, the 1-day standard for business trips is 125 manats in Baku, 100 manats in Nakhchivan, 95 manats in Ganja and Sumgait cities, and 90 manats in other cities, regional centers, urban settlements and villages.
Before going on a business trip, a seconded employee is given a cash advance according to the duration of the business trip. The cash advance consists of expenses required for business trips and transportation costs according to the 1-day norm of business trip expenses.
The 1-day norm of travel expenses includes hotel expenses and daily expenses (expenses related to food, city transportation, communication and other services). Transportation expenses include going to and from the place of assignment, domestic transportation expenses (except for using a taxi, going to the station, port (ferry), airport, and other points in the country, except for the use of a taxi), and these expenses are paid based on the submitted documents.
With the Decision of the Board of the Ministry of Finance dated September 27, 2024, "On approval of the Rules of the Travel of Employees" and "On amending the Decision No. Q-01 of the Ministry of Finance of the Republic of Azerbaijan dated January 18, 2012", changes were made in the travel norms.
According to the innovation, during business trips within the territory of the country, 70 percent of the established 1-day norm of business trip expenses in the territory of the Republic of Azerbaijan are hotel expenses, 25 percent are daily food expenses, and 5 percent are expenses related to intra-city transportation, communication and other services. In the case of business trips to foreign countries, 60 percent of the 1-day norm of the business trip expenses are hotel expenses, 35 percent are daily food expenses, and 5 percent are expenses related to intra-city transportation, communication and other services.
In cases where all travel expenses are covered by the inviting party, the travel expenses are not paid to the employee. In cases where the inviting party provides only accommodation to the seconded employee, the employee is paid 40 percent of the 1-day norm of the business trip expenses for each day. In cases where the inviting party provides only food to the seconded employee, the employee is paid 65 percent of the 1-day norm of the business trip expenses for each day. In cases where the inviting party provides accommodation and food to the seconded employee, the employee is paid 5 percent of the 1-day norm of the business trip expenses for each day. If the inviting party pays the employee accommodation expenses and daily expenses (expenses related to food, city transportation, communication and other services), the difference is paid to the employee if the amount paid to the employee is less than the 1-day norm of business trip expenses. If the inviting party provides the employee with food and pays only for accommodation expenses, if the amount paid to the employee is less than 60 percent of the 1-day norm of the business trip expenses, the difference and 5 percent of the 1-day norm of the business trip expenses are paid to the employee. If the inviting party provides the employee with accommodation and pays only for food expenses, if the amount paid to the employee is less than 35 percent of the 1-day norm of the business trip expenses, the difference and 5 percent of the 1-day norm of the business trip expenses are paid to the employee. Whether the inviting party will fully or partially bear the costs is determined in each case on the basis of relevant documents.
Example 1: The worker was sent to the city of Gazakh for 3 days. The inviting party bears the cost of the employee's meal. In this case, in accordance with the norm (1-day norm for Kazakh city 90 manats), payment will be made in the amount of 65% of the norm, that is, the employee's 1-day travel expenses will be 58.5 manats, and 3-day expenses will be 175.5 manats:
90 x 65% = 58.5 manats;
58.5 x 3 = 175.5 manats.
Example 2: The employee was sent to Germany for 4 days. The inviting party bears the cost of the employee's meal. In this case, according to the norm (1-day norm for Germany 250 euros), the employee will be paid 65% of the norm. That is, the employee's 1-day travel expenses will be 162.50 euros, and 4-day expenses will be 650 euros:
250 x 65% = 162.50 euros;
162.50 x 4 = 650 euros.
The rules of business trips of employees are regulated by the decision of the Ministry of Finance of the Republic of Azerbaijan No. Q-01 dated 18.01.2012. Tax experts comment on recent changes to that decision.
A business trip is considered to be a business trip when an employee goes to another place for a specified period of time by the order (command) of the head of the state body, enterprise, department and organization (hereinafter - the organization). The duration of the employee's secondment is determined by the head of the organization, but this period cannot exceed 40 days, excluding the time spent on the road.
In the territory of the Republic of Azerbaijan, the 1-day standard for business trips is 125 manats in Baku, 100 manats in Nakhchivan, 95 manats in Ganja and Sumgait cities, and 90 manats in other cities, regional centers, urban settlements and villages.
Before going on a business trip, a seconded employee is given a cash advance according to the duration of the business trip. The cash advance consists of expenses required for business trips and transportation costs according to the 1-day norm of business trip expenses.
The 1-day norm of travel expenses includes hotel expenses and daily expenses (expenses related to food, city transportation, communication and other services). Transportation expenses include going to and from the place of assignment, domestic transportation expenses (except for using a taxi, going to the station, port (ferry), airport, and other points in the country, except for the use of a taxi), and these expenses are paid based on the submitted documents.
With the Decision of the Board of the Ministry of Finance dated September 27, 2024, "On approval of the Rules of the Travel of Employees" and "On amending the Decision No. Q-01 of the Ministry of Finance of the Republic of Azerbaijan dated January 18, 2012", changes were made in the travel norms.
According to the innovation, during business trips within the territory of the country, 70 percent of the established 1-day norm of business trip expenses in the territory of the Republic of Azerbaijan are hotel expenses, 25 percent are daily food expenses, and 5 percent are expenses related to intra-city transportation, communication and other services. In the case of business trips to foreign countries, 60 percent of the 1-day norm of the business trip expenses are hotel expenses, 35 percent are daily food expenses, and 5 percent are expenses related to intra-city transportation, communication and other services.
In cases where all travel expenses are covered by the inviting party, the travel expenses are not paid to the employee. In cases where the inviting party provides only accommodation to the seconded employee, the employee is paid 40 percent of the 1-day norm of the business trip expenses for each day. In cases where the inviting party provides only food to the seconded employee, the employee is paid 65 percent of the 1-day norm of the business trip expenses for each day. In cases where the inviting party provides accommodation and food to the seconded employee, the employee is paid 5 percent of the 1-day norm of the business trip expenses for each day. If the inviting party pays the employee accommodation expenses and daily expenses (expenses related to food, city transportation, communication and other services), the difference is paid to the employee if the amount paid to the employee is less than the 1-day norm of business trip expenses. If the inviting party provides the employee with food and pays only for accommodation expenses, if the amount paid to the employee is less than 60 percent of the 1-day norm of the business trip expenses, the difference and 5 percent of the 1-day norm of the business trip expenses are paid to the employee. If the inviting party provides the employee with accommodation and pays only for food expenses, if the amount paid to the employee is less than 35 percent of the 1-day norm of the business trip expenses, the difference and 5 percent of the 1-day norm of the business trip expenses are paid to the employee. Whether the inviting party will fully or partially bear the costs is determined in each case on the basis of relevant documents.
Example 1: The worker was sent to the city of Gazakh for 3 days. The inviting party bears the cost of the employee's meal. In this case, in accordance with the norm (1-day norm for Kazakh city 90 manats), payment will be made in the amount of 65% of the norm, that is, the employee's 1-day travel expenses will be 58.5 manats, and 3-day expenses will be 175.5 manats:
90 x 65% = 58.5 manats;
58.5 x 3 = 175.5 manats.
Example 2: The employee was sent to Germany for 4 days. The inviting party bears the cost of the employee's meal. In this case, according to the norm (1-day norm for Germany 250 euros), the employee will be paid 65% of the norm. That is, the employee's 1-day travel expenses will be 162.50 euros, and 4-day expenses will be 650 euros:
250 x 65% = 162.50 euros;
162.50 x 4 = 650 euros.